eak Positioning Technologies (“Peak”) is a publicly traded IT portfolio management company headquartered in Montreal whose common shares trade on the Canadian Securities Exchange. Through our Chinese subsidiaries, we like to think of ourselves as a bridge that allows North American investors to participate in the digitization of China’s economy through the adoption of technologies such as Fintech, Blockchain, cloud computing and others.
Our three operating subsidiaries each leverage the latest technologies to provide services aimed at making B2B transactions more efficient and providing small and medium size businesses in general with the financial resources they need to successfully manage and grow their businesses.
Our first subsidiary, Asia Synergy Technologies (“AST”), was created in June 2016. AST operates a product procurement and purchase order financing platform called Gold River. Gold River allows businesses to register on the platform to order various industrial products, metals and raw materials. In addition to placing orders, the businesses can also request to have their orders financed, which makes the platform very attractive to businesses in some of China’s most cash-strapped industrial sectors. Using Gold River, AST acts as a broker between the businesses and the material/product suppliers and earns a fee for the service, usually in the form of a markup of the price of the product or material. AST refers all Gold River financing requests to its financial services partner and earns a fee for the referral. Gold River was initially used for the procurement of metals and raw materials the platform can be adapted to allow for the procurement of a variety of industrial products. In late 2017, AST began discussions with a strategic partner to allow for the procurement of certain auto parts on Gold River. AST has plans to introduce more products to the platform over time as dictated by client demand.
Our second subsidiary, Asia Synergy Data Solutions (“ASDS”), was established in March 2017. With the creation of ASDS, we also acquired the exclusive Chinese commercial rights to the Cubeler commercial lending Fintech platform. Cubeler uses a proprietary analytics engine to match registered businesses looking for credit with various lenders and financial institutions whose credit criteria the businesses fit. Cubeler reads and analyses financial data from the registered businesses’ accounting software and other sources and matches the financial data with the credit criteria of lenders that are also registered on the platform. The end result is that each business and each lender can log on to their respective Cubeler accounts to review their respective credit matches and engage in credit transactions. ASDS earns a service fee on all transactions facilitated by the platform. Cubeler was first launched in China in August 2017. Through strategic partnerships with financial and legal service providers, Cubeler also offers related financial services to platform users. One such service is the GoldLegal™ service, which is similar to an insurance policy to protect registered Cubeler lenders against potential payment defaults for loans they extend on the platform.
Our third subsidiary, Asia Synergy Financial Capital (“ASFC”), is expected to begin its operations in the spring of 2018. As a licensed financial institutionin China, ASFC will provide a variety of financial services primarily to registered businesses on our Gold River and Cubeler platforms, including loans and purchase order and equipment financing. ASFC will have the specific mandate to:
- Be the “Default” lender and one of the first lenders to provide loans and other forms of credit to qualified small and medium size businesses on the Cubeler platform, and;
- Be AST’s exclusive financial partner on the Gold River platform to which AST refers all purchase order financing requests.
As the default lender on Cubeler, ASFC will also occasionally team up with other lenders on the platform under the “Lend with Me” program, where ASFC and another lender both share the interest revenue and the risk associated with extending credit to a qualified registered business. ASFC is expected to derive most of its revenues in the form of interest income earned on loans and credit it extends on both the Gold River and Cubeler platforms.
Our future plans call for the use of technologies such as Blockchain, machine learning and artificial intelligence to implement a series of loyalty programs on our platforms where credit can be earned and used to purchase products and services offered on the platforms. Having ASFC eventually obtain a full banking license is also part of our roadmap, as we position it as a bank that specifically caters to the financial needs of Chinese small and medium businesses and entrepreneurs.
We have a team of dedicated and experienced business executives with strong ties to China, who understand the Chinese culture and what it takes to be successful there. Our success is predicated on our commitment to our shareholders and in the strength of the partnerships we have made over the years and will continue to make with Chinese industry leaders who share our vision of bringing together North American investors and opportunities in China’s most promising technology sectors.
For more details about us, our vision, our strategy and our partnerships, please visit the Investor Relations section and download our latest financial statements and fact sheet.